Market forces

B&B shares set to fall further

Can it get much worse at Bradford & Bingley, the buy-to-let specialist? Yes, according to forecasters at Keefe, Bruyette & Woods. B&B unveiled a net loss of more than £17m in the first half. Impairment charges on bad loans soared to £74.6m, but KBW reckons that could rise by another £115m in the second half. The bank remains well funded, with deposits accounting for 58 per cent of loans and with net deposit growth in August, but what B&B needs is a buyer with a big balance sheet. With none in sight, it is no surprise that KBW reckons shares could drift lower still, from Friday's close of 50p to about 35p. In the past 12 months, B&B, chaired by Rod Kent, pictured, has lost nearly 90 per cent of its stock market value, one of the biggest declines recorded by a UK-listed company. What a shambles.

Rivals raise stake in Liberty

Liberty International, the property giant that owns Capital Shopping Centres, is at the centre of intense bid speculation after foreign rivals emerged on its share register. US malls operator Simon Property Group has built up a stake of 4.22 per cent, and Australia's Westfield Group has almost 3 per cent. Analysts have cautioned that Simon doesn't have sufficient firepower for a takeover, but it could launch a joint bid with Westfield, carving up Liberty's international property portfolio. But the powerbroker at Liberty is the formidable Donald Gordon, its founder and life president, who controls 22 per cent of the company. I am told that he doesn't want to sell while property prices are so depressed. Unless, of course, he gets an offer he can't refuse. Hold.

Woolies break-up touted

Steve Johnson, who joins as chief executive of Woolworths next month, is rumoured to have prepared plans to break up the group. He is said to want to sell EUK, the entertainment wholesale division and 2 Entertain, its video publishing joint venture with the BBC. The snag is the pension deficit of £48m and debt of £124m, not to mention the consumer slowdown. But perhaps he knows something we don't.